Important Disclosures, Please Read
Investors should consider the investment
objectives, potential risks, management fees, and charges and expenses carefully before
investing. This and other information is contained in the Fund’s prospectus, which may
be obtained online, or by calling 855-505-VEST (8378). Please read the prospectus
carefully before investing. Distributed by Quasar Distributors LLC.
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Investments involve risks. Principal loss is possible. The value of an investment will fluctuate and may be worth more or less than the original investment. There can be no guarantee that the Fund will be successful in its strategy to provide a hedge against declines below a floor in the 10-year rate over a quarter.
Swaptions Risk. The Fund will invest in swaptions. A swaption is an option contract that gives the holder the right (but not the obligation) to enter into a swap at a predetermined rate at expiration in exchange for a premium payment. Swaptions enable the Fund to purchase exposure that is significantly greater than the premium paid. Consequently, the value of swaptions can be volatile, and a small investment in swaptions can have a large impact on the performance of the Fund. The Fund risks losing all or part of the cash paid (premium) for purchasing swaptions. Additionally, the value of the option may be lost if the Fund fails to exercise such option at or prior to its expiration.
Interest Rate Swaps Risk. The Fund will invest in interest rate swaps. In an interest rate swap, the Fund and another party exchange their rights to receive interest payments based on a reference interest rate. Because interest rate movements do not always align with projections of a swap counterparty, interest rate swaps are subject to interest rate risk. An interest rate swap could result in losses if the underlying asset or reference does not perform as anticipated.
Counterparty Risk. The risk of loss to the Fund for derivative transactions (such as interest rate swaps or swaptions) that are entered into on a net basis depends on which party is obligated to pay the net amount to the other party. A counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty or its affiliate becomes insolvent or bankrupt, or defaults on its payment obligations to the Fund, the value of an investment held by the Fund may decline.
Capped Upside Return Risk. To the extent that the Fund uses a derivatives instrument to cap the Fund’s return when the 10-year rate increases above a specified level at the end of the calendar quarter, the Fund will not participate in gains beyond the cap. In the event an investor purchases shares after the date on which the Fund enters into such derivative instruments (i.e., at the end of each calendar quarter) and the 10-year rate has risen to a level near to the cap, there may be little or no ability for that investor to experience an investment gain on their shares with respect to the 10-year rate during that quarter.
Floor Loss Risk. There can be no guarantee that the Fund will be successful in its strategy to provide protection against declines below a floor in the 10-year rate over a calendar quarter. The Fund’s strategy seeks to hedge against increases in the 10-year rate, while limiting downside losses from a significant decrease in the 10-year rate, if shares are bought on the day on which the Fund enters into these derivatives and held until they expire at the end of the calendar quarter. In the event an investor purchases shares after the date on which the derivatives were entered into and the Fund has already increased in value, then the investor may experience losses prior to gaining the protection offered by the floor, which is not guaranteed. The Fund does not provide principal protection, and an investor may experience significant losses on its investment, including the loss of its entire investment.
ETF Risk. ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Please see the prospectus for more information regarding these and other risks associated with the Fund.